Slide 1: 3Q FY2021 Presentation Material
@A CyberAgent. ENGLISH 3Q FY2021 Presentation Material April to June 2021 C July 28, 2021 )
Slide 2: Forward-looking statement
[Forward-looking statement] The future information, such as earnings forecast, written in this document is based on our expectations and assumptions as of the date the forecast was made. Our actual results could differ materially from those described in this forecast because of various risks and unc
Slide 3: Contents
0. Contents 1. Quarterly Results (April - June 2021) 2. Forecast 3. Internet Advertisement Business 4. Game Business 5. Media Business 6. FY2021 2
Slide 4: Quarterly Results (April - June 2021)
1. Quarterly Results (April – June) Quarterly Results (April - June 2021) 3
Slide 5: Quarterly Results highlights
1. Quarterly Results (April – June) The growth of games and ads exceeded our expectation. FY2021 The forecast is revised upward again. 192.2 billion yen up 70.3% YoY Q3 Sales: OP: 44.5 billion yen up 5.4X YoY Sales of ABEMA and related businesses increased about 1.5x year over year. Media Sales:19.9
Slide 6: Consolidated Sales
1. Quarterly Results (April – June) [Consolidated Sales] 192.2 billion yen (up 70.3% YoY) Both the game business and the advertising 192.2 business were strong. 163.4 129.1 131.0 120.8 117.3 115.6 113.6 111.7 Billion Yen 109.5 110.8 112.8 107.5 101.8 104.4 97.9 93.3 89.5 86.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 7: Consolidated OP
1. Quarterly Results (April – June) [Consolidated OP] OP reached 44.5 billion yen (up 5.4x YoY) driven by the new game title. 44.5 25.8 12.4 11.4 Billion Yen 9.8 9.4 8.6 7.9 8.2 8.2 7.4 7.7 6.8 7.0 6.3 6.5 5.3 5.3 3.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2017 FY2018 FY2019 FY20
Slide 8: SG&A Expenses
1. Quarterly Results (April – June) [SG&A Expenses] Q3 30.8 billion Billion Yen It stayed flat quarter over quarter. Special incentives Other* 30.6 30.8 Sales related costs 29.7 28.9 28.9 Office costs 1.4 Personnel 27.3 26.3 26.9 Advertisement cost 25.0 7.6 8.6 24.9 25.0 24.6 24.5 7.5 23.7 7.7 23.1
Slide 9: No. of Employees
1. Quarterly Results (April – June) [No. of Employees] Total headcount was 5,958 at the end of June. (300 new graduates joined in April) Investment Development 5,958 Headquarters 12 5,549 5,535 384 Other 5,433 5,467 5,493 13 12 12 11 5,282 5,215 14 Game 5,109 5,111 11 5,162 370 374 370 374 369 11 64
Slide 10: PL
1. Quarterly Results (April – June) [PL] million yen FY2021 Q3 FY2020 Q3 YoY FY2021 Q2 QoQ Net Sales 192,234 112,854 70.3% 163,483 17.6% Gross profit 75,433 32,003 135.7% 56,529 33.4% SG&A expenses 30,851 23,724 30.0% 30,655 0.6% Operating profit 44,581 8,279 438.5% 25,874 72.3% OPM 23.2% 7.3% 15.9p
Slide 11: BS
1. Quarterly Results [BS] We maintain a strong financial position. End of End of End of million yen YoY QoQ June. 2021 June. 2020 Mar. 2021 Current assets 272,884 181,182 50.6% 234,873 16.2% Cash deposits 146,607 90,425 62.1% 100,384 46.0% Fixed assets 70,785 54,629 29.6% 65,437 8.2% Total assets 34
Slide 12: FY2021 Forecast
2. Forecast FY2021 Forecast October 2020 - September 2021 11
Slide 13: Upward Revision: Sales and OP
2. Forecast [Upward Revision] 650.0 Sales 650 billion yen (up 35.8% YoY) 100.0 OP 100 billion yen (up 195.2% YoY) 478.5 453.6 419.5 371.3 310.6 254.3 205.2 36.7 33.8 32.7 Sales 162.4 30.7 30.1 30.8 141.1 OP 119.5 22.2 96.6 87.0 93.8 17.4 76.0 14.3 Billion yen 60.1 10.3 43.2 9.3 26.7 4.3 5.5 4.6 4.4
Slide 14: Upward Revision and dividend forecast
2. Forecast [Upward Revision] FY2021 FY2021 billion yen Previous Forecast Revised Forecast Difference FY2020 YoY (As of April.28, 2021) (As of July.28, 2021) Minimum Maximum Net Sales 600 650 50 478.5 35.8% Operating profit 57.5 62.5 100 37.5-42.5 33.8 195.2% Ordinary profit 57.5 62.5 100 37.5-42.5
Slide 15: Progress to Full-year Forecast after revision
2. Forecast [Progress to Full-year Forecast after revision] Progression rate Sales 486.7B 75% 650B Progression rate Operating profit 77.5B 78% 100B Progression rate Ordinary profit 77.7B 78% 100B Progression rate Net profit 33.0B 83% 40B 0% 25% 50% 75% 100% 14
Slide 16: Internet Advertisement
3. Internet Advertisement Business Internet Advertisement 15
Slide 17: Internet Advertisement: Quarterly Sales
3. Internet Advertisement Business [Quarterly Sales] Q3 81.8 billion yen (up 27.3% YoY) Sales increased quarter over quarter despite the 80.6 81.8 declining trend in Q3. 76.5 72.7 66.6 67.3 64.3 64.3 64.9 63.3 61.4 61.3 62.2 60.2 Billion yen 57.6 55.6 52.5 51.0 48.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 18: Internet Advertisement: Change in Sales
3. Internet Advertisement Business [Change in Sales] The advertising demand once declined due to the state of emergency etc. is now demonstrating upward trend. 81.8 818 80.6 806 YoY 76.5 765 +27.3％ Billion yen The advertising demand declined due to the state of emergency etc. 売上高 643 64.3 64.9 649 3
Slide 19: Internet Advertisement: Quarterly OP
3. Internet Advertisement Business [Quarterly OP] OP was 5.2 billion yen (up 9.7% YoY) OPM tends to decline in Q3. 7.23 6.72 Billion yen 6.37 OP OP Margin 5.66 5.70 5.52 5.13 5.43 5.20 5.04 4.91 4.69 4.74 4.58 4.52 4.44 4.24 4.23 3.96 9.6% 10.4% 9.4% 9.8% 9.2% 9.0% 7.8% 8.0% 7.8% 6.9% 6.8% 8.2% 7.8%
Slide 20: Focus Area: AI-driven advertising products
3. Internet Advertisement Business [Focus Area] AI-driven advertising products are largely accepted by advertisers*. KIWAMI Prediction AI KIWAMI Prediction TD AI produces highly effective ad creative. AI automates creating text ads. 81%** of our advertisers* introduced it. 80%** of our advertisers*
Slide 21: Focus Area: More AI-driven advertising products
3. Internet Advertisement Business [Focus Area] More AI-driven advertising products are released to meet advertisers need. KIWAMI Prediction Trimming KIWAMI Prediction LP Released in Released in June 17 June 23 AI generates a batch of images AI creates landing pages** with with high predicted CTR* v
Slide 22: Game
4. Game Business @A CyberAgent. Game 21
Slide 23: Game: Quarterly Sales
4. Game Business [Quarterly Sales] Sales hit a record high of 92.3 billion yen. (up 151.7% YoY) “Uma Musume Pretty Derby*” was released on February 24 and contributed to the results three months in a row. 92.3 63.9 Billion yen 44.8 40.4 39.9 38.2 37.7 39.0 35.8 36.3 35.5 36.8 36.3 36.7 34.6 35.2 33.
Slide 24: Game: Quarterly OP
4. Game Business [Quarterly OP] Q3 44.24 billion yen (up 483.5% YoY) 44.24 23.20 Billion yen 10.44 8.55 7.91 8.37 7.49 7.47 7.58 6.89 6.77 7.00 6.45 5.64 5.23 5.11 4.33 3.19 1.13 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2017 FY2018 FY2019 FY2020 FY2021 *Quarterly OP and OPM: Specia
Slide 25: Uma Musume Pretty Derby
4. Game Business [Uma Musume Pretty Derby*] *Uma Musume Pretty Derby* : © Cygames, Inc. 24
Slide 26: Uma Musume Pretty Derby downloads
4. Game Business [Uma Musume Pretty Derby*] Exceeded 9 million downloads in five months since launch. Number of downloads Jul. 20 9M Jun. 10 8M May 14 7M Apr.27 6M Apr.8 5M Mar.30 4M Mar.17 3M Mar.10 2M Mar.1 1M Feb 24 Launched for DMM GAMES Launch Launched for iOS and Android Feb. 24 Jul. 20 25 *Um
Slide 27: Uma Musume franchise new works
4. Game Business [Uma Musume Pretty Derby*] New works are released as part of Uma Musume franchise. TV Anime Live Event Available on “Uma Musume Pretty Derby“** Available on “3rd Event WINNING DREAM STAGE*****” ABEMA ABEMA ONLINE PPV Celebrating Uma Musume Pretty Derby 3rd Event WINNING DREAM STAGE*
Slide 28: Uma Musume new characters
4. Game Business [Uma Musume Pretty Derby*] 11 new characters carrying the names of real racehorses are added, bringing the total to 36. More will be coming in the future. New 27 *“Uma Musume Pretty Derby” :©Cygames, Inc **Characters carry the names of real racehorses: Not including characters in di
Slide 29: Uma Musume new features
4. Game Business [Uma Musume Pretty Derby*] We aim to make it a long running hit by adding new features, etc. “Room Match” Feature New Training Scenario A feature that allows players to host their “Aoharu Cup -Shine out, our team own matches against other players. bond-” is under development. Added
Slide 30: Major Titles
4. Game Business [Major Titles] FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 1 2 5 7 10 Sengoku PRINCESS UMA Granblue Embu Shadowverse CONNECT! MUSUME Fantasy Re:Dive Pretty Derby -KIZNA- Original IP Original IP Original IP Original IP Original IP Esports for Training Card Battle R
Slide 31: Upcoming Games
4. Game Business [Upcoming Games] Aim to make new game titles successful. Idol management RPG “D-CIDE TRAUMERAI”*** Mixed media project “IDOLY PRIDE”* QualiArts, Inc. June 24 Sumzap, Inc./ Drecom Co., Ltd./Bushiroad Inc. To be released in 2021 Release “NieR Re[in]carnation”** English ver., Korean ve
Slide 32: Upcoming Games: FINAL FANTASY VII EVER CRISIS
4. Game Business [Upcoming Games] The latest title of the “FINAL FANTASY VII” series, “FINAL FANTASY VII EVER CRISIS”* for smartphones is scheduled for global distribution** in 2022. Development: Applibot, Inc. Planning & Production: SQUARE ENIX CO., LTD. *”FINAL FANTASY VII EVER CRISIS”: © 1997, 20
Slide 33: Upcoming Games: Jujutsu Kaisen Phantom Parade
4. Game Business [Upcoming Games] Sumzap has announced “Jujutsu Kaisen Phantom Parade” as the first mobile game based on the TV anime “Jujutsu Kaisen”. Planning & Peoduction: Sumzap, Inc. TOHO CO., LTD. Development & Operation: Sumzap, Inc. *” Jujutsu Kaisen Phantom Parade”: © Gege Akutami/ Shueisha
Slide 34: Upcoming Games: Cygames console titles
4. Game Business [Upcoming Games] Cygames, Inc. develops new console game titles with creative and technical capabilities. In May 2021, it announced “Project GAMM*” is currently under development. “Project GAMM*” Action Game “GRANBLUE FANTASY Relink*” Action RPG “Project Awakening*” Action RPG Cygam
Slide 35: Media
5. Media Business Media @A CyberAgent. 34
Slide 36: Media: Quarterly Sales and OP
5. Media Business [Quarterly Sales] [Quarterly OP] 19.9 billion yen (grew 1.5x YoY) -3.8 billion yen operating loss in Q3. The related businesses of ABEMA performed well. 20.4 19.9 19.8 17.6 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY2017 FY2018 FY2019 FY2020 FY2021 13.8 13.3 12.2 12
Slide 37: ABEMA downloads exceed 68 million
5. Media Business 68M DL Exceeded 68 million downloads in five years and three months after the launch. Downloads April 2016 Release 4月 Apr. 6月 Jun. 9月 Sept. 12月 Dec. 3月 Mar. 6月 Jun. 9月 Sept. 12月 Dec. 3月 Mar. 6月 Jun. 9月 Sept. 12月 Dec. 3月 Mar. 6月 Jun. 9月 Sept. 12月 Dec. 3月 Mar. ６月 Jun. 9月 Sept. 12月 De
Slide 38: ABEMA growth of WAU
5. Media Business [ABEMA] Sports, news, and original programs 14.90 are watched by many people. We are 14.31 14.56 14.23 14.49 14.23 also planning exciting programming 14.03 13.89 13.30 13.21 schedule for July-September quarter. 12.69 13.25 12.83 12.75 13.15 12.39 12.19 11.98 12.18 Growth of WAU* 11
Slide 39: ABEMA: MLB broadcasts and sports content
5. Media Business [ABEMA] With 166 official MLB games being broadcast on ABEMA, sports and other matches have become one of the most appealing contents. 38 ©AbemaTV, Inc.
Slide 40: ABEMA: original content
5. Media Business [ABEMA] ABEMA continues to produce and broadcast original content in a wide range of genres, including the first drama from a popular mystery novel series and a drama that depict the dark side of modern society. “You Can’t Fool Me Mr. Wolf “What I Learned from Being a Normal High “
Slide 41: ABEMA: TV Asahi collaboration
5. Media Business [ABEMA] Popular programs on TV Asahi and ABEMA will collaborate. ©AbemaTV, Inc. 40
Slide 42: ABEMA: PPV events July-September
5. Media Business [ABEMA] There will be a variety of PPV* events for the July-September quarter. Third Generation J Soul Brothers NMB48 Miru Shiroma HYPNOSISMIC 7th LIVE LIVE TOUR 2021"THIS IS JSB" August 29 Graduation Concert August 15 <SUMMIT OF DIVISIONS> August 7&8 Momoiro Clover Z ACTORS☆LEAGUE
Slide 43: Quarterly Sales of ABEMA and Related Businesses
5. Media Business [Quarterly Sales of ABEMA and Related Businesses] ABEMA PPV ONLINE LIVE Q3 10.5 billion yen（up 2.3x YoY) 10.5 10.3 10.4 PPV Ads 7.9 Online Sports Betting “WINTICKET” Subscription 4.7 4.5 3.9 3.6 3.5 3.2 3.3 Official Shopping Channel Related “ABEMA Shopping” 2.0 businesses 1.6 1.4 B
Slide 44: WINTICKET transaction volume
5. Media Business [WINTICKET] WINTICKET has increased its transaction volume by about 5.5 times year- on-year through cooperation with ABEMA and its own prediction data. 39.3 Quarterly Transaction Amount* of Four Features of WINTICKET "WINTICKET" Racing Racing Live streaming Prediction Extensive Pro
Slide 45: ABEMA Medium and Long-Term Sales Pipeline
5. Media Business [ABEMA] Medium and Long-Term Sales Pipeline Accelerate monetization by related businesses etc. Related Business while increasing advertising and subscription revenues. etc. Subscription Advertising 2016 2019 44
Slide 46: FY2021
6. FY2021 @A CyberAgent. FY2021
Slide 47: FY2021 strategy: Media, Ad, Game
6. FY2021 Grow ABEMA as a medium to long-term pillar. Media Grow ABEMA larger and increase monetization Aim to increase sales by maximizing advertising Ad effectiveness Game Make successful games and enhance the operational capability to run long term games 46
Slide 48: Aiming to be a company with medium to long-term supporters
Aiming to be a company with medium to long-term supporters
Slide 49: IR Channel
IR video contents for shareholders and investors “IR Channel” These short videos cover the latest case studies of AI in the advertising business, as well as the usage scenarios and functions of "ABEMA" in Japan. https://www.cyberagent.co.jp/en/ir/ir_channel/ The evolving ad creative of CyberAgent AI
Slide 50: Integrated Report CyberAgent Way 2020
Integrated Report CyberAgent Way 2020 The New Normal is a theme of the report which describes CyberAgent's strength in responding to change, creating new business opportunities, and a new structure that separates supervision and execution to strengthen governance further. Also, to provide increasing